Commons Sense

House of Commons · Ministers' Questions

Asylum Hotels

Monday 17 November 2025 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The amount recouped by the Government from private companies for asylum accommodation contracts is 74 million, including 46 million in excess profit.
  • The Government aims to close all hotels used for asylum accommodation by the end of the current Parliament.
  • The process of closing the hotels is described as complex and must be managed in a controlled and orderly manner.

Topics (select to filter)

Questions & Answers

Q1 Chris Murray Lab Edinburgh East and Musselburgh
Asylum & Refugees
Context

The Home Affairs Committee report highlighted the profiteering by private companies in asylum accommodation contracts under previous Conservative government. Communities have suffered due to these arrangements.

Question

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I thank the Home Secretary for that response. The Home Affairs Committee report on asylum accommodation shows that private companies have made millions from the taxpayer, while communities and asylum seekers have suffered. What is the Home Secretary doing to address the appalling profiteering that the Tories allowed, and the disastrous asylum contracts, and will she trigger the break clause next year?

Answer from The Secretary of State for the Home Department (Shabana Mahmood)

So far, the amount that has been recouped by this Government is £74 million, of which £46 million is excess profit and the remainder is service charges or service credit and VAT. We are rapidly reviewing the contracts that we inherited, including the break clause, to ensure that they are providing value for money for taxpayers. I will keep the matter under review and update the House in due course.

Partly answered

How: Under Review

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Q2 Euan Stainbank Lab Falkirk
Asylum & Refugees
Context

The Government have increased processing rates, but communities are concerned about the equitable closure of asylum hotels.

Question

The Government have already acted to fix the unworkable mess in which the Tories left the asylum system. An increase of 116% in processing in one year is bringing down the backlog, securing refugee status for those fleeing persecution and removing those with no right to be here, but communities such as those in Falkirk must see the benefit of the difference in approach. What steps will the Home Secretary take to guarantee Tory-created asylum hotels will be closed equitably across the nations of the United Kingdom?

Answer from The Secretary of State for the Home Department (Shabana Mahmood)

We are working with Ministers across Government on closing every hotel as soon as possible, and by the end of this Parliament. As we have all seen, that is a complex process that must be delivered through a controlled, managed and orderly programme of work. We do not want to be in a situation where, without an alternative ready, we start exiting hotels before it is time to do so. I assure my hon. Friend that we will take a balanced and evidence-based approach towards making decisions about the locations that we will use and how we will exit hotels. I look forward to talking to him in more detail about these plans in due course.

Partly answered

How: Complex Process

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